In July 2007, Pantheon added another oil and natural gas exploration venture to its Louisiana portfolio. Pantheon farmed-into another project in Iberville Parish, Louisiana.

Prospects

The farm-in covers one prospect, Bullseye, with leases covering 1,700 net acres The Bullseye prospect is testing deeper untested fault blocks on the crest of the Laurel Ridge field. Laurel Ridge is a "turtle" feature (inverted basin) feature discovered in 1944 by Humble Oil (ExxonMobil).

At Bullseye the intention is to test two deeper geopressured targets with one vertical well. These have combined gross best estimate potential reserves (previously described as "P50 potential reserves") of 12.5 million barrels ("mmbo") of liquids and 33 billion cubic feet ("bcf") of natural gas

The well is currently scheduled to commence in April 2008. It is estimated to take approximately 60 days to reach total depth on a trouble-free basis. Golden Gate Petroleum will act as the operator, having farmed-into this prospect on similar terms.

The location is shown in Figure 1.

Figure 1: Location of Bullseye Prospect

Geology and Geophysics of the Bullseye Prospect

The Bullseye prospect's principal attributes may be characterised as:

• Two independent traps mapped by 3D seismic calibrated to the lithology
• An offset well with logs indicating both pay and hydrocarbon shows
• Numerous successful direct local analogs for prospects similar to Bullseye in terms of seismic characteristics and trap geometries

The Bullseye prospect is a deeper pool prospect with targets in the Miocene (Miogyp) and Oligocene (Cib Haz) between 12,400 feet ("ft") and 13,500 ft on the crest of the Laurel Ridge anticline. Laurel Ridge is a "turtle" feature (inverted basin) feature discovered in 1944. Laurel Ridge was discovered by Humble Oil (ExxonMobil). Laurel Ridge produced 146 billion cubic feet ("bcf") of natural gas and four million barrels of oil ("mmbo") from normal pressured sands between 10,100 feet ft and 10,600 ft. These sands are now depleted.

In 2005, 3D seismic acquisition was completed following the abandonment of the Noble #1 Acosta well. Analysis of the seismic data, including calibration to the lithology, identified a clearly independent stratigraphic trap in each of the Miocene and Oligocene. The high impedance sands are identified as high amplitude positive reflections within a much thicker shale section. See Figure 2.

Figure 2: 3D Seismic Profile: Proposed Location and Offset well w/log pay

The initial Bullseye well location is 3,000ft offset to the Noble #1 Acosta well drilled in 2005. This well was plugged due to mechanical difficulties. The Oligocene target was not reached by the latter well, but both electric and mud logs were obtained for the Miocene. Electric logs indicated some 50ft of low resistivity-low contrast pay (see Figure 3). Mud log data indicated possible natural gas and condensate shows across the Miocene section.

The initial well is planned to test both Miocene and Oligocene. In surrounding analog fields both the Miocene and Oligocene reservoirs are considered high quality. Porosity ranges between 24 to 30% and permeability between 300 to 1,000mD. Producing well rates from surrounding analog fields range from 500 to 1,000 barrels per day of oil and 4 to 10 million cubic feet of gas per day. A number of these analog fields are similar to Bullseye in terms of seismic characteristics and trap geometries.

Figure 3: Log Pay versus Wet Sand